The value of a derivative security ________.

depends on the value of another related security

A diversified equity fund is one which

Invests in stocks across various sectors

Stone Harbor Products takes out a bank loan. It receives $100,000 and signs a promissory note to pay back.

a new financial asset was created

Which of the following is not a financial intermediary?

General department of taxation (GDT)

A liquid fund can invest its money in which of the following?

Money market instruments of less than 91 days maturity

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VI quiz 1

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Answers

1
The value of a derivative security ________.
is unrelated to the value of a related security
depends on the value of another related security
can be integrated only by calculus professors
affects the value of a related security
2
Investment bankers perform which of the following role(s)?
All of the options
Market new stock issue and bond issues for firms
Design securities with desirable risk and return objectives
Provide advice to the firms as to market conditions, price, etc
3
________ represents an ownership share in a corporation.
A bank loan or Bond
Preference shares
A call option
Ordinary shares
4
A diversified equity fund is one which
Invests in minimum 30 stocks
Invests in one excellent company
Invests in one sector
Invests in stocks across various sectors
5
In a market economy, capital resources (surplus to deficit) are primarily allocated by ________.
corporation CEOs
governments
investment bankers
financial markets
6
Firms that specialize in helping companies raise capital by selling securities to the public are called ________.
investment companies
Stock brokers
Commercial bank
Insurance companies
7
Which of the following is not a money market security?
6-month maturity certificate of deposit
All of the above
U.S. Treasury bill
common stock
8
Stone Harbor Products takes out a bank loan. It receives $100,000 and signs a promissory note to pay back.
a financial asset was traded for a real asset
a real asset was created
a new financial asset was created
a financial asset was destroyed
9
Which of the following is not a financial intermediary?
Cambodia securities exchange (CSX)
Cambodia derivatives exchange (CDX)
General department of taxation (GDT)
Cambodia Small and Medium Enterprise (SMEs) Bank
10
Which of the following instruments can mutual funds scheme invest in?
Gold
Corporate Bonds
All of the above
Stocks
11
A liquid fund can invest its money in which of the following?
Corporate bonds / paper of more than 91 days maturity
Central Government securities of around 10 year average maturity.
Short term Bank Deposits
Money market instruments of less than 91 days maturity

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